Question
Suppose the Wt;, i = 1,2 are two Wiener cesses. Use Ito's Lemma in obtaining appro- priate stochastic differential equations for the following transformations.
Suppose the Wt;, i = 1,2 are two Wiener cesses. Use Ito's Lemma in obtaining appro- priate stochastic differential equations for the following transformations. pro- (a) X; = (W,)4 (b) X; = (Wh + Wi,)? (c) X = t2 +e Wiz (d) X = e+W!z
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